Readers' forum : Two’s company

Two clients have substantial property portfolios and work on these full time. The rents are their only source of income. We have always reported this income on the property pages of their tax returns but are now considering incorporation. Capital gains tax should not be a problem because we would claim hold over relief under TCGA 1992 s 165 but what about stamp duty land tax (SDLT)?

One client is an individual the other is a partnership. We understand that a partnership can claim relief from SDLT but how does this work given that HMRC does not recognise a ‘property partnership’ per se. If relief is available should we complete a partnership return and claim exemption from Class 4 National Insurance contributions? However it seems very unfair that a partnership can claim SDLT relief but not an individual. Should we advise the individual client...